Key Highlights:
- Red Robin Gourmet Burgers (RRGB, Financial) outperformed Q1 earnings expectations with a substantial non-GAAP EPS increase.
- Revenue for the quarter rose slightly year-over-year, beating market forecasts.
- Despite strong earnings, the company adjusted its fiscal 2025 revenue guidance downward.
Q1 Earnings Overview
Red Robin Gourmet Burgers (RRGB) delivered impressive financial results for the first quarter, exceeding Wall Street expectations. The company reported a non-GAAP EPS of $0.20, which significantly outperformed projections by $0.69. Revenue also saw a modest increase, reaching $392.35 million, marking a 1% rise from the previous year and surpassing analyst estimates by $3.58 million. Core operational strength was highlighted as adjusted EBITDA climbed to $27.9 million, more than doubling year-over-year, and the company successfully repaid $17.8 million in debt. Despite these victories, the fiscal 2025 revenue guidance was marginally reduced, cautioning investors on future expectations.
Analyst Insights and Forecasts
Currently, based on projections by five analysts, the average one-year price target for Red Robin Gourmet Burgers Inc (RRGB, Financial) stands at $9.45. This target includes optimistic projections reaching $12.00 and conservative estimates of $3.25. The average target presents a substantial upside of 201.92% from the current share price of $3.13. For investors seeking deeper insights, further detailed estimates are available on the Red Robin Gourmet Burgers Inc (RRGB) Forecast page.
Brokerage Recommendations
The consensus recommendation from five brokerage firms rates Red Robin Gourmet Burgers Inc (RRGB, Financial) at an average of 2.2, suggesting an "Outperform" status. This brokerage rating utilizes a scale from 1 to 5, where 1 represents a Strong Buy and 5 indicates a Sell.
GuruFocus Valuation
According to GuruFocus, the estimated GF Value for RRGB in one year is predicted to be $8.00. This estimate reveals a potential upside of 155.59% from the current trading price of $3.13. The GF Value is a calculated estimate reflecting what the stock should ideally trade at, based on its historical trading multiples, previous growth patterns, and future performance forecasts. Investors can explore more detailed information on the Red Robin Gourmet Burgers Inc (RRGB, Financial) Summary page.
